Startup Genome, a policy and advisory research firm, has reported that startups in Lagos, Nigeria, have secured a record $820 million in early-stage funding. This figure represents the highest amount of startup funding in the Sub-Saharan African region. The figure was established by assessing the value of startup exits and valuations from Q2 2020 to 2022.
In a prior report, it was highlighted that 10 Nigerian startups were among the 40 tech firms chosen for Google’s $4 million Black Founders Fund. The selection was made from a pool of startups across Europe and Africa, with Nigerian startups holding a significant presence.
Startup Genome’s report further disclosed that the Lagos startup ecosystem boasts a valuation of $8.4 billion, making it the regional leader in the Sub-Saharan startup ecosystem in terms of both ecosystem value and funding volume.
Among its closest regional competitors, Nairobi and Cape Town hold total startup valuations of $7 billion and $3 billion, respectively. Globally, Lagos ranks between 51 and 60 among the world’s top emerging startup ecosystems.
In terms of funding rounds, the report highlighted OPay’s $400 million Series C financing in August 2021 as the largest deal. Additionally, Flutterwave’s Series D round in February 2022 raised $250 million, boosting the company’s valuation to around $3 billion. However, the report indicated a 6% decrease in venture capital funding in the region from 2021 to 2022.
In the period between 2018 and 2022, fintech startups represented 41% of all deals in the region, emerging as the leading technology sector. Notably, Nairobi has the most prominent fintech hub in the region.
IMAGE: The Guardian